Fixing Nylon-string/classical fret-out

I recently bought a Cordoba C3 on clearance, and thanks to my dad who was rushing me to pick a guitar and go, I just now noticed several defects on the guitar, including a crack where the headstock was glued back on, and most importantly, a bulge on the fretboard where the neck joins the body. This part of the fretboard is higher than the rest of the fretboard and causes severe fret buzz on strings lowE through B, and on the high E causes the 11th and 12th to sound the same. Any help on how to fix this?

You can't really see it unless you look down the length of the fretboard and it'd be hard to get that in a picture; the problem is, where the neck joins the body, that part of the fretboard bulges higher than the rest.

The fret isn't popped out, the entire fretboard bulges up higher than the rest, so when I fret the 11th on the high E, it actually sounds the 12th. On all other frets this doesn't happen, however there is severe fret buzz.

Sorry, but that's what you get when you go cheap. This is a common enough problem on a lot of low budget guitars, not only on classical styles but steel strings as well. There's not a lot you can do for it other than have a neck reset done, and that would undoubtedly cost more than that model of guitar did new. I have a tad bit of that very same issue with my Alvarez, although it's not bad enough to cause me any fret-out issues.

Have a look through the Frets. com website. If I remember correctly he addresses this problem somewhere there. If there's a fix for it, he'll know of one for sure.